Growth and the plant-size distribution over the long-run
(with Jonas Gathen , 2022)
In this paper, we study the link between rapid economic growth and changes in the plant size distribution in Indonesia. We find that:
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As output grew by a factor of twenty-five, the average plant size doubled and very large plants strongly increased their shares of output and employment.
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The direct contribution of aggregate productivity for output growth in Indonesia is less than twelve percent.
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Growth is driven by endogenous transition dynamics.